Struggling with Amazon Sponsored Products? New Sellers Share Their Ad Campaign Woes

New Amazon sellers are encountering significant hurdles with their Sponsored Products advertising campaigns, leading to low visibility and stalled growth. A recent discussion on the r/FulfillmentByAmazon subreddit highlights a common predicament faced by entrepreneurs launching on the platform: difficulty in getting their ads to spend their allocated daily budget and gain sufficient traction.

One seller, who launched their Shopify store in late 2025 and enrolled products into Amazon FBA in early 2026, described a setup with two manual campaigns, each with a $10 daily budget, fewer than 10 keywords, dynamic bidding (down only), minimal bid adjustments, and around 30 negative keywords. Despite generating a modest number of sales, their campaigns achieved approximately 40,000 impressions and 120 clicks, spending less than 20% of their daily budget. This inability to scale ad spend is a critical concern for new sellers aiming to establish a foothold in the competitive Amazon marketplace.

Understanding Low Ad Spend and Clicks

The core issue raised is the lack of engagement and budget utilization. For a new product with a new listing, it’s common for Sponsored Products campaigns to underperform initially. Several factors contribute to this: low keyword relevance, insufficient bid amounts, overly restrictive negative keyword lists, or even the competitiveness of the ad space for the chosen keywords. The seller’s setup, while containing common elements like manual campaigns and negative keywords, might be too conservative for a new product still building its sales history and data.

Dynamic bidding set to ‘down only’ means Amazon will only lower bids if it predicts lower conversion rates, which can stifle initial visibility if the algorithm hasn’t yet gathered enough data on the product’s performance. The limited number of keywords and minimal bid adjustments also contribute to a narrow reach.

Optimizing for Visibility and Spend

For sellers experiencing similar challenges, the key lies in optimizing their campaign structure and bidding strategies. Instead of solely relying on ‘down only’ dynamic bidding, consider starting with ‘dynamic bidding’ (which allows for both increases and decreases) or even ‘fixed bidding’ with a slightly higher initial bid to gain visibility. Expanding the keyword list, particularly with a mix of broad, phrase, and exact match types, can also increase the chances of ad impressions.

Furthermore, a new seller should meticulously review their keyword targeting. Are the chosen keywords genuinely reflective of what customers search for when looking for the product? Utilizing Amazon’s search term reports, once available, will be crucial for identifying high-performing and irrelevant search terms to refine the strategy and negative keyword list.

The Importance of Data and Iteration

Amazon advertising, especially for new products, is an iterative process. The seller’s concern about not spending the daily budget is valid, but it’s also important to recognize that campaigns need time and data to optimize. A product with no sales history will naturally receive fewer impressions and clicks. Gradually increasing bids, cautiously adding more relevant keywords, and closely monitoring the search term reports are essential steps.

Allowing dynamic bidding to adjust bids both up and down, within a defined budget, can help Amazon’s algorithm learn faster. The goal is to collect enough data points (impressions, clicks, conversions) to inform more precise bidding and targeting decisions. Patience, coupled with data-driven adjustments, is vital for overcoming the initial low-performance phase.

Community Reaction

The community response on Reddit offered valuable insights. Suggestions included reviewing the product’s organic ranking, ensuring the listing was fully optimized with high-quality images and compelling copy, and checking the competitiveness of the targeted keywords. Some users advised starting with broader targeting or even automatic campaigns to gather initial search term data before transitioning to more manual, targeted campaigns. The consensus emphasized that for new listings, patience and a willingness to experiment with bidding strategies are crucial for breaking through the initial visibility barrier.

Actionable Takeaways for Sellers

• Review Bidding Strategy: Consider switching from ‘down only’ dynamic bidding to a more flexible option to increase initial visibility.
• Expand Keyword Research: Broaden your keyword list and ensure they are highly relevant to your product.
• Monitor Search Terms: Once data becomes available, analyze the search term report to refine your keyword targeting and negative keyword list.
• Patience and Iteration: Understand that new campaigns require time and data to optimize. Be prepared to make gradual adjustments.
• Listing Optimization: Ensure your product listing is fully optimized for organic search before relying heavily on ads.

This discussion, originating from a seller’s experience shared on Reddit, underscores common challenges faced by new entrants into Amazon’s advertising ecosystem. By understanding these issues and applying data-driven strategies, sellers can improve their campaign performance and drive growth.

Source: Amazon advertising issues (sponsored products) on r/FulfillmentByAmazon